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The Best Strategy for Protecting Your Investment in MSFT Stock

Posted On May 17, 2018 1:20 pm
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Finally, Robinson loves Microsoft stock because it’s also a play on the $406 billion cryptocurrency market.

In August 2017, Microsoft launched the Confidential Consortium (“Coco”) Framework, which aims to turn the promise of Ethereum’s smart contracts into a disruptive reality.

Microsoft CTO Mark Russinovich said on Aug. 12, 2017, that the tech giant has started exploring how Coco could be used in the retail, supply chain, and financial services sectors.

Because of all these sources of revenue growth, analyst are joining Robinson in his bullish outlook for the MSFT stock price.

Over the next 12 months, FactSet reports one analyst expects the MSFT stock price to climb to $130 per share.

From yesterday’s (May 14) closing price of $98.03, that’s a potential gain of 32.61%.

That profit opportunity doesn’t even include Microsoft’s $1.68 dividend, which is a yield of 1.72%.

Of course, no matter how good things look for MSFT shareholders, Microsoft stock is not immune to market volatility.

The Dow Jones Industrial Average dropped nearly 5.5% from Feb. 27 to March 2, and the MSFT stock fell right along with it during that same time.

It dropped from $95.74 to $91.58, a 4.34% loss in less than a week.

However, Robinson always has a plan to minimize losses and maximize gains.

Robinson says his strategy is “perfect to use when market volatility is high.”

When used correctly, it will protect you from volatile markets.

But that’s not all.

It could also maximize your returns.

Here’s how it works, so you know how to capitalize on the double-digit gains Microsoft stock could make its shareholders in the next 12 months.

Use This Strategy to Maximize Your Profits from MSFT Stock

Robinson calls his strategy the “Cowboy Split.”

Here’s how it works.

First, decide how much money you want to invest in MSFT stock.

You’ll use half of the money to buy MSFT at the market price, which would be $98.03 today.

Once the market order fills, you’ll enter a lowball limit order with the other half of the money at 20% less than the market price, which would be $78.43 per share.

If MSFT falls to $78.43, the order will automatically fill.

Between your first order and your second order, you now have an average purchase price of $88.23.

If Microsoft climbed to $90 per share after falling to $77, you would be in the green, with a 2% return.

If you just bought in at $98.03, you would be down 8.19%.

*This has been a guest post by Money Morning*

 Related: Find Out Why Mark Cuban Thinks These 2 Tech Stocks Are Winners

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